The annual profit a company makes by selling computers is 17 million dollars and increasing at a rate of 5/% per year. The number of computers it sells per year is 3000 and increasing by 600 per year. (a) What is the average profit per computer sold

Average profit per computer sold

Current:

Average profit per computer sold = Income from sale of Computer / No. of computer sold

Average profit per computer sold = $17,000,000 / 3000 = $5,667

After growth:

Sales = $17,000,000 x 105% = 17,850,000

Number of Computers = 3000 + 600

Average profit per computer sold = Income from sale of Computer / No. of computer sold

Average profit per computer sold = $17,850,000 / 3600 = $4,958